Annual growth in UK house prices slowed significantly in September, cutting nearly in half compared to the previous month as rising mortgage interest rates and broader economic concerns weighed on the housing market. According to new data from Nationwide, the average price of a British home increased by 0.8% over the year to reach £274,251.
This represents the slowest pace of house price growth since December of last year. In August, annual growth had stood at 1.6%, meaning the current rate has effectively halved. On a monthly basis, prices dipped by 0.2% during September.
Analysts attribute the cooling trend to ongoing economic uncertainty fueled by the conflict in the Middle East, which continues to deter potential homebuyers. Higher borrowing costs have further squeezed affordability, contributing to the dampened demand observed in the latest figures.
Economic uncertainty plus expensive loans equals stalled sales. Sellers need to lower their expectations soon.
Wait, prices still went up? I expected a drop. This feels like false hope to me.
Mortgage rates are still too high for my budget. I’m not sure any slowdown changes that for ordinary people.
0.8% is barely above inflation. Is this really a slowdown or just the market catching its breath?
Finally, some relief for first-time buyers. The market needed a reality check after that summer surge.